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Invest in Maldives

a guide for foreign investors

CTL Strategies ranked in Chambers Global Guide 2024

CTL Strategies has been ranked in the Chambers Global Guide 2024, published by Chambers and Partners.

The new edition of the Global Guide highlighted CTL for its considerable market respect in tax  matters, and demonstrating strength in litigation and corporate services. Among responses received from interviewees, Chamber and Partners quoted that the firm is “able to handle complex matters and provide unbiased legal advice.”

Chambers and Partners is an independent research firm that operates in 200 jurisdictions and is commonly referred to as the “gold standard” in the legal profession. Chambers and Partners publishes rankings and information on the world’s top lawyers and law firms. In-depth interviews with lawyers, in-house counsel for clients, and independent experts were used to compile the rankings.

Recent Updates

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13th Amendment to the Tourism Act ratified into law

The 13th Amendment (the “13th Amendment”) to the Maldives Tourism Act (Act Number 2/99) (the “Act”) has been ratified by the President of the Republic of Maldives on 29 August 2024 introducing changes to the lease extension payment periods set out in the Act. 

The main development under the 13th Amendment is the reopening of the window within which parties are able to pay the reduced extension fees set out in the Act for the extension of lease periods of properties leased for the development of tourist resorts which had earlier expired on 27 December 2022. 

Following the 13th Amendment coming into effect, the lease extension fees payable are as follows:

Extension of lease period up to 50 years

  • USD 100,000 per year of lease extension, where the lessee agrees to settle the amount by 28 February 2025. 
  • USD 200,000 per year of lease extension, where the lessee agrees to settle the amount after 28 February 2025.

Extension of lease period up to 99 years (where the lease period is 50 years)

  • A lump sum payment of USD 5,000,000 where the lessee agrees to settle the amount by 28 February 2025.
  • A lump sum payment of USD 10,000,000 where the lessee agrees to settle the amount after 28 February 2025.

The material changes introduced in the 13th Amendment are summarised in the below table. 

Subject Former Provision Changed by the 13th Amendment
Parties that can apply for an extension of the lease up to 50 years Applications can be submitted by parties to whom properties were leased prior to the commencement of the 2nd Amendment of the Act (8 September 2010). Applications can be submitted by any party irrespective of when properties were leased to them.
Fee payment routes for applications for lease extensions to up to 50 years Fees can be paid under either of the following routes:

  1. USD 100,000 per year of extension, where the lessee wishes to extend the lease period within 2 years from 27 December 2020; or
  2. USD 200,000 per year of extension, where the lessee agrees to extend the lease period after 2 years from 27 December 2020.
 Fees for the extension can be paid by either of the following routes:

  1. USD 100,000 per year of lease extension, where the lessee agrees to extend the lease period within 6 months from the date the 13th Amendment comes into effect (29 August 2024);or
  2. USD 200,000 per year of lease extension, where the lessee agrees to extend the lease period after 6 months from the date the 13th Amendment comes into effect (29 August 2024).
Fee payment routes for applications for lease extensions to up to 99 years The fee can be paid under either of the following routes:

  1. A lump sum fee of USD 5,000,000 provided the fee is paid within the first 2 years from 27 December 2020.
  2. A lump sum fee of USD 10,000,000 where the leaseholder makes the payment after 2 years from 27 December 2020.
 The lessee shall make the lease extension payments by either of the following routes:

  1. A lump sum payment of USD 5,000,000 provided the amount is paid within 6 months from the date the 13th Amendment comes into effect (29 August 2024).
  2. A lump sum payment of USD 10,000,000 where the amount is to be paid after 6 months from the date the 13th Amendment comes into effect (29 August 2024).

Effective Date
The 13th Amendment will be effective from 29 August 2024.

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Third Amendment to Country-by-Country Reporting Regulation Published

The Maldives Inland Revenue Authority (“MIRA”) has amended the Country-by-Country Reporting (“CbCR”) Regulation through its Third Amendment, thereby ending  the temporary suspension of filing requirements for Constituent Entities which are not the Ultimate Parent Entity (“UPE”) of their respective multinational (“MNE”) Group. According to Section 4(b) of the CbCR Regulation, these entities may now be required to file the Country-by-Country Reports for fiscal years ending in the year 2024 or thereafter.

For context, it is important to note that CbCR filing obligations typically apply to MNE groups resident in the Maldives, with the responsibility generally resting on the UPE of the group resident in the Maldives. However, under  specific conditions, this requirement can extend to Constituent Entities within the group that are resident in the Maldives. Notably, MNE Groups with  consolidated group revenues below EUR750 million are exempt from this requirement.

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CTL Strategies ranked in Chambers Global Guide 2024

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Overview of Tourism Land Rent Regulation